Cash is the very lifeblood of business, something which seems too often forgotten.
.jpg)
Time and time again you see talk of turnover or profits, and cash really not getting the attention it deserves. In the present market cash is becoming rather scarce, customers are paying later, and lenders are making new loans or overdrafts much more difficult to come by. So the focus must be on preserving your own cash flow at all costs.
I notice this week, that even our good friend Keith Steven at KSA Company Rescue is writing on his blog that they are having great difficulty being paid. KSA specialise in rescuing businesses in distress, mainly through the use of the Company Voluntary Arrangement (CVA) mechanism – indeed they are the countries leading experts on the CVA. Over many years we have worked very closely with KSA and have both saved many businesses through innovative solutions and good quality financial management. If their clients are having trouble paying them in order to save their businesses (despite not having to pay historical creditors) then it really does make you wonder what is happening with liquidity.
So, the message is simple. Focus on cash. Get your sales invoices out quickly, make sure you are only giving credit to people who can pay you, and then ensure you get paid in a timely manner.
Cash really is king!
